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tv   Countdown to the Closing Bell  FOX Business  October 31, 2012 3:00pm-4:00pm EDT

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can. many people have asked when the mandatory evacuations of buildings and zone a will be lifted. the answer is not until our building department inspects the building structures that may have been damaged by the wind and water. the staten island buildings are almost done. we will finish that in the next day or so. we need to certify that the buildings are safe to occupy. i know it is annoying to everyone, but we do not need to have any more loss of life. every building in staten island will have been tagged. you can love to see. red, yellow and green. green means it is safe, red means you cannot enter the building. yellow means you should exercise great caution. for example, go to some floors but not others. the ability to notify each owner
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in a very short time really is not there and the phone service does not work all that well. you can take a look at your building. i know it is, once again, not that convenient, but it is a practical way to save -- way to solve the problem. large building owners who have building staff that is familiar with working with us consult a certified with the department building engineers are willing to accept the self certification they will received the green light to be able to go into it. for the average person, you will have to just look at the sticker. let me give you a little update on our hospitals and healthcare facilities. the 17 chronic healthcare
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facilities in zone a had to be evacuated. you will see cert teams, fire department, ambulances moving together. we want to make sure that these people are moved safely and some of them require extra care while we do that. most of the patients are moved to other chronic care facilities. some were moved to the cities seven shelters. all of these patients are safe and being cared for. there were no storm related deaths from any of the evacuated facilities. i want to thank the federal department of health and human services for sending teams to help run the special needs shelters. the shelters are intended for short-term use so we will be relocating these stations to longer-term facilities by this weekend, perhaps saturday. and -- three hospitals downtown
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had to be evacuated. one of the cities main hospitals had to be evacuated. that is almost completed good bellevue will now have to evacuate becauseeof damage it sustained. when they got into the basement, they realized there was more we are in the process of finding beds to move these patients now and i want to thank the greater new york hospital association for their help in the process of relocating patients. in the days ahead, we will begin consolidating the number of
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shelters. we have some shelters heavily populated and some that have a dozen people in them. it becomes problematic to stop all of those so we will try to move people as little as possible, but we certainly will consolidate. i want to particularly thank the state university of new york. the volunteers and city employees running the shelters have done a phenomenal job and they deserve our thanks. i want to thank many new yorkers who have come forward to provide help. i got off the phone with somebody earlier who has a company that gave $2.5 million hopefully we will have and appropriate time to announce that that is. i just wanted to point out there are people who are coming forward. dennis: michael bloomberg saying
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hospitals are still evacuated. the city is trying to get back up and running. it is a huge challenge. the death toll for new york alone is 30. the fact is, that you cannot blame this one on over active or hyper concerned governors or the media. it is that that. for the markets, it looks like things are up and running. no flush crash. we do fundamentally have a market that is working. take a look right now. anything could happen within this last hour. dow jones industrials down about 32-point right now. we were up 80 points in the earlier part of the day. a big falloff right after about 12:30 p.m. eastern. very little recovery from then on. let's take a look at the nasdaq. do not count out apple.
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apple is looking at lawsuits not seen since october 2008. at the moment, we are looking at the nasdaq which is heavily rated with apple. quick check of the s&p 500. these are levels that you really want to watch at the moment. you can see that, you know, with 500 stocks in here, let's put things into perspective. 72% of the companies that have reported earnings and some of them, by the way, are postponing earnings -- pulling back by just under two points. not too huge of a fall. we have been considerably higher. the level to watch right now, can we hold at 1410 or do we go to 1405 and below the 1400? we are watching that. let's take it to the floor show. traders at the new york stock exchange, cme -- what has this
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been like for you today? >> it has been a challenge. the pipeline for customers to access the united states marketplace, particularly the floor of the new york stock exchange are open. the internet has been the biggest challenge. those people that did not have the functionality have told their customers in order to get their customers to come back another day, do not come to me today, i do not have the ability to manage your order flow and that is exactly what happened with my trading. they lost the ability. they made a smart move. that is the right way to do business. liz: i want to bring your attention to two names that were
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there, we have western union. we should let people know western union cut their 2013 outlook. ford motor company is a shining star here, as is, general motors. i want to get to the cme. now the storm has passed, give us a sense of commodity land and what you see here? we did the crude oil higher. >> second straight monthly loss. gold really getting to, you know, somewhat of a pullback this last month. dropping off that 1700 level. like sandra and i said last week, we will have a little bounce back and redid. the s&p, the trading is definitely down.
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they are not trading on the new york, their conditions are held short here in chicago. the market on close orders, you mentioned this, anything can happen, it is october 31, look at that volume that disappeared this last couple days coming to closure. liz: we want to let people know, again, with about 51 units to go before the exchange is closed today, anything could happen. we will walk you through all of this. folks, just bear with me for a second, a couple of stock stories related to the store. groupon, groupon is not going to be offering the deals to any of the market they cannot specifically reach.
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a lot of their businesses local. by the way, manhattan, anything below 34th, no electricity. con ed is working hard to restore that. you are seeing groupon hit very hard. conversely, netflix moving higher. this is a story, karl icahn taking a pretty significant stake. about 10% of the shares. he is willing to have talks with management over at netflix. karl icahn, not to mention, this is the guy who even as new york is paralyzed is making his move on the day like this. i want to get to tom riley. you are starting up trading once again today. what is it like for you on the floor? >> we had some phone problems,
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as well. the market moved, you know, it did not have any problems today. all the orders needed to be filled, god filled. we expected to be a little busier tomorrow. we had a pretty good workforce here. getting here was probably harder than the actual workday here. liz: gentlemen, thank you. my sincere thanks to all of you. hang in there. thank you so much. according to disaster modeling firm e cat, it will face $10 billion of losses in hurricane cindy. we have heard higher than $50 billion when all is said and done. how is this impacting insurance companies on wall street who will have to step up to the
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plate and pay claims close back i am sure you have been doing your own modeling. >> thank you for having us. it is a terrible tragedy. ultimately, the $10 billion number, maybe it is $15 billion, they are reasonably credible estimates. this was a dramatic storm and it compares in terms of human suffering a lot of the other terrible things we have seen over the years, from an insurance perspective, they will not lead to private insurance payouts. it will end up being flood related. of course, although the storm was a massive ball of physical energy, it was so fast and widespread that the ultimate impact was less modest and if it
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had been a cat four or five storm. unlike in florida, you do not have entire towns missing their roofs. you generally end up having claims, which, you know, you look at the damage and say it must be astronomical. it will modestly be more reasonable. homes have been damage as opposed to being completely destroyed. liz: you look at berkshire hathaway which owns geico, some of these will see payoffs. you make a very interesting point in that is this was not necessarily a wind event, it was a storm surge event. most of that is covered by government storm insurance. if we look at the most expensive storms, could this be worse than the isaacs and hurricane andrew
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>> in public opinion, it is not always clear what really caused the damage. people fight with their insurers for years. as a practical matter, the biggest flood risk and storm surge risk will come not from personal customers, but rather from commercial concerns. not that there is anyone who looks at this and says it will not be a manageable event, but if we are likely to get -- it will be a question of who will pay for this. liz: before we go, who do you think comes out a winner here? >> well, you know, we like allstate. if you look for some context, look at the group you had before. the industry has been doing well because they have been raising pricing. allstate is the easiest sort of
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long-term pricing recovery story because they have a substantial number of captivation. they sell only one product. allstate is able to push pretty substantial price increases through when they need to. that is the company good earnings. they have had a lot of momentum. i think it is a hick up in the story. liz: josh, good to see you. thank you so much. josh sterling. watch those insurers. it will change moment by moment. dow jones industrials looks like making a go. turning positive right now. well, actually, about a half of a point. we have been up 81 points today. we have so much to talk about. the barracks, the earth movers, the home numbers, they have
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building products that will be needed for the post hurricane cleanup. all of that and much more coming up. stay tuned. ♪ this is america.
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liz: we have some breaking news right now. let's get to the culpepper. it involves bone and self-service. nicole: this has been something
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that has been plaguing the nyc all day. the service is starting to come back. myself included and my producer --. noted verizon services back for them. a guy next to me. also noted that they are able to access the internet. they need to work with companies in order to execute numbers and get orders from hedge funds. that will give them competition. it is slow, it is spotty, but certainly a big piece of news.
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a lot of people starting to get cell and internet service pack. back to you. liz: let's get to sandra who is watching a stunning move in lumbar prices today. sandra: it certainly gives an indication of lumber demand. there will be thousands of homes that need to be rebuilt. we saw it at a 19 month high and, of course, the trade in the stock market would be to buy some of that stock. lowe's, home depot, all of these stocks that would be affected by that. a huge louver today. some estimate it could go to 2013. liz: we are looking at eagle
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materials. not perhaps familiar, but this has seen in the last 39 minutes a jump of a full 10%. a stunning move her. some of these related names included in rebuilding homes. a huge spike at the start of trading. the dow and s&p have turned positive. bob garfield will be joining us live to talk about the trade starting up once again at the nasdaq. in his first days of trading, first iraq then there were down, now they are up again. what are the most important sectors you should be watching today? we have a fox business exclusive
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in the last hour of trading. what jumped out to you most? >> they will be the big winners. they have been winners so far are ready because as home prices are stabling and starting to rise, people are more willing to remodel and rebuild their homes. they are also driving revenue. you talk about 70% of the companies reporting. revenues are very tricky and very important. liz: there is a company called jenna -- these are the kind of companies if you are looking for a play, we really do want to stress as a business network we are watching all of this, this is a very human story as well. >> kudos should go to all the
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first responders and politicians out there working. liz: pretty significant. look at this jump. let's talk about refineries. i got a report that in edgewater new jersey there are lines to get gasoline. the problem is it is running out of gasoline. >> where i live, one gas station open yesterday out of normally 15. i read a report earlier today only 44% of the refiners are running right now on the east coast. obviously, there will be some supply constraints. that will push prices. liz: how much do you put in trading today? >> if you are a retail investor, a normal investor, pay attention to market news, not market action. do not pay attention today to
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price moves too much. liz: bottled water is an entire dyer need at the moment. we are looking at the dow jones industrials and s&p 500. about 35 minutes before trading. stay with us. we will be right back with so much more. do not move. ♪
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>> okay, a full ten points to the upside here. make that 11. 13118. we reversed the downward trend. nasdaq in the mud down 10 points, but s&p up a full two points. don't blame us, blame them. that's what the new york stock exchange says about the wall street brokages -- wait, blaming who? >> it's a great story. >> what do they mean 1234 >> we're asking the wall street firms, okay, could you set up
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satellite offices? asking the new york stock exchange what did the brokerages say with the call sunday night, first reported that when they revolted against the plan to open monday. here's what they are saying. listen, it's not our fault we closed the stock exchange. we could have opened in chicago. we had a data center in new jersey that was fully operational. didn't even get power cut off because of the super storm sandy. they say the brokerage firms were complaining that they didn't have confidence in arca because they didn't test the systems, their own internal systems to see if they could interact with the electronic network, and they are saying that the fcc, in allowing arca to operate as an independent exchange when, you know, any time it's like the ncse can declare it, it's our market.
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forget about the specialists. they say, telling the fox business networks, that the big firms never tested connectivity or not enough. >> a-ha! doing this is less his fault maybe? >> i don't know. what they are saying also that, you know, at the very minimum, the fcc should have forced this testing. listen, i don't know. if i'm duncan, and i know major order providers, listen, and i like duncan a lot, and i know the major providers are not tested with the system, i would make a stink of it; right? wouldn't you? just in case, you know. >> test it, guys, make sure it goes. >> yeah, and by the way, this is not what he said publicly. >> let me say who was working. we have the ceo coming up in a few minutes, had no problem. now, citi group, of course, problems with the building below 34th street, morgan stanley and
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sachs flooding. >> i don't buy this. they didn't have to be in pardos way, but outside the city. by the way, there's offices in dallas. >> in a bigger picture -- >> dallas. >> this just destroy the image that wall street is where it's at? not only the problems with the weather. >> you're right. there's an issue here with wall street and the stock exchanges that they saw this coming ten days ago. joe was pounding the table about this storm being the mother of all storms. i came back from dallas because i knew wednesday there was going to be a problem, and you know what? you know, i prepared. why didn't wall street prepare for something bad? i mean, they have -- listen, goldman sachs has offices in london, in dallas, in chicago. i know this for a fact. they could operate, and, you know, they didn't. it's -- it's -- you know what, liz? it's not so bad on this. this is two days. market's doing okay; right? liz: very well. >> suppose we have something
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really bad. what's the plan? if there's a terrorist attack, are we out for two weeks? that would be a problem, by the way, no market for two weeks. liz: move it to fresno. nothing happens there. >> i wouldn't mind. i love dallas. i wish they'd move it to dallas. liz: what about fitzgerald, after the tragedy of 9/11, in the world trade center towers, they said we don't need a gleaming tower downtown. let's move it. they did. they don't care if they are in bunkers. >> they are not a major player -- liz: for the federal rereceiver. >> so it mf global, didn't they? i'm not comparing them to mf global. please, i like howard. the big banks should be been a little more cognizant of what was going on. liz: indeed, indeed. charlie, things change, don't they? saying it was not us, but them, the big banks, closing bell ringing in 27 minutes. holing on to slim gains it's dow jones and s&p, but gains
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nonetheless. institutions partially shut down by super storm sandy. as i mentioned, trading floors and offices all over new york city remained fully operational in the crisis. how did they do it? the ceo of north america corporate and investment banking exclusively here in our studio. ♪ [ male announcer ] you are a business pro. monarch of marketi analysis. with the ability to improve roi through seo all by cob. and from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price.
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>> looking at shares of netflix surging on the news that they are not worried about the storm, causing one of his own. a disclosure of the stake in netflix. any -- nicole's on the floor with the details. >> netflix jumping, a $300 stock
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last summer, but, today, another move higher. we follow it close by because it ties into carl icon. the stake revealed with the u.s. securities and exchange commission looking like approximately 5.4 million shares through icon capital according to reports, but, liz, you and i know that he's been known, obviously, for instituting a media change in some of these companies. he's worked close with clorox, motorola who was then sold to google. they look as a takeover target, maybe by microsoft. what's carl really thinking for netflix when he steps in putting the huge stake out there there's a big pop indeed. back to you. liz: thank you very much. the best late plans, okay, charlie and i were just starting to talk about, well, hey, move
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to fresno. after 9/11, a lot moved operations to new jersey. guess what? new jersey lost power as you know. the story of the banks, even with the stock exchange shut down, moving oaring'ses to jersey city, still managed to weather the storm and stay open for business when they had to shut down the jersey city operations. the north american corporate banking ceo joining me now. charlie was saying, wait, the french kicked our -- well, the word for tuckus you know. >> thank you for hosting me, and, by the way, before being here, i was in act can with the head of fixed income and equities, and we are fully operational. liz: where though? you had back office operations in jersey city. that lost power and moved them where? >> recovery site in woodbridge, new jersey, moved yesterday, 250 people there to monitor operations, serving clients from
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france and back, and i have to say the staff are doing a fantastic job covering our clients' needs over three days. the good news is, today, fully operational, serving clients. liz: you assed ceo, this -- you, the ceo, this is what you do in operations like this. looking at the stock exchange announcement sunday that they were not going to open, what was your first thought there? >> well, same thing. first it was, how are we going to handle clients' needs? reaction was to make sure that from a pure operational standpoint, markets open, close, we would be there for inquiries no matter what. liz: were you part of the conversations with the exchanges? >> we have teams constantly connected to the exchanges. >>liz: duncan said some of the g banks, didn't name you
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specifically, duh didn't test the systems that they could have opened. had you tested your systems with arca? >> well, we've been fully operational, you know, teams fully connected with the exchanges, and whether monday or tuesday markets closed, market open, our systems and regulatory system functioned perfectly well. liz: no concerns at aural believing that things could happen? did it annoy you that suddenly, you cowcht trade for anxious clients? >> well, it's always, obviously, a concern in mind. this is why you have to be prepared, and monday, tuesday, operating out of woodbridge and 787 7th avenue, all staff on deck making sure all inquiries would be addressed. something you have to realize as well, you know, we have options domestically and for specific needs, we shift, actually, specific inquiries overseas and
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handle them out of london or paris. liz: sure, i would imagine. being international bank, you have all kinds of options. when something like this happens, what's the process j all chiefs, heads of businesses on the phone, discuss what's the plan, how will we reroute opportunities? >> looks like you've been with us over three days, but that's how it happens. we have a crisis management formed by the head of business line, head of functions, head of, you know, recovery as well, and there's constant communication to make sure we have the latest and greatest status of the situation. liz: the travel situation, it is stunning to see pictures of the la guardia airport, it's not going to happen. planes will not get out in large numbers for a long time. the flooding unbelievable. you can't resort to travel to start moving your teams elsewhere. will they stay in woodbridge,
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what's the plan going forward? >> the way we manage the jersey city teams, basically, on-site over the weekend, starts sunday, able to manage hotel rooms, and they were on-site, away from the families, by the way, just to make sure operations would be conducted. liz: interesting appointment. same as fox business and fox news. we've all been coming in, away from our families. what's this tell you about new york and wall street and the general community? what have you seen? >> i have to say i have fantastic admiration for people of new york. i think, you know, managing crisis is kind of in the genes of the city. i've highly benefited from this. people are just dedicated, committed, and, you know, they've been really saying clients first and the firm has been protected. liz: the corporate and investment north america banking ceo. thank you for coming here exclusively. your time is valuable, but it's
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great to hear the story from you, the chief. >> thank you for having me here. liz: update us when you move back. >> most definitely will. liz: millions still without power, much of it south of 34th street all the way down. you know, last night, times square and all the lights and anything below that? pitch black. people are stocking up on water and supplies when they can find them. after the break, oliver with what you should be stocking up in your portfolio including the company that could get a boost as the east coast remains in survival mode. ♪ follow the wings.
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liz: dow jones negative again, couldn't hold gains, down two points after having been down much more. had been up 81. markets minutest away from closing, 10 minutes from the first day of trading post hurricane sandy. what should you, the investor, take advantage if you are able to trade? the first one i would think is about soda. >> coca-cola, one of the biggest districters of water. the biggest demand is for bottled water. they got private label stuff in the supermarketses as well. that's a way they push the product driving revenue into the fourth quarter, and as i said before, that's important. liz: stock up just about under a percent.
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murphy oil, your energy play? >> energy play, murphy oil turning around, fell off the cliff in february and went down, turned it around, shaken up management, products grow, and revenues and margins increasing again. we think highly of them. i don't think it's impacted by the hurricane. liz: here's what's impacted, amazon. down 2.5%. all i i think of with a company like this is first of all, if you don't have internet, you don't order online. on top of that, fedex and ups, last check, they were up, but those two, i have not gotten any mail. i mean, -- >> when a shipment is missing, you blame the shipper, not the shipping company. it's not on ups's head, but amazon. that's why the stock is down. we had discussions about this as a management team earlier, went -- and we see it as a buying
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opportunity. again, don't look at today as a change in market trend. a.m.son's a company -- amazon will do well over six months. liz: why mcdonalds today? >> it's a value play. they continue to do a good job growing internationally. has nothing to do with the storm, obviously, the theme today, but a company that cooperates to do well selling off materially in the last few months. it will do well. liz: a dividend of 3.6%. >> with a strong history -- as a matter of fact, more than doubled in the last decade. think about a way to double your income? mcdonalds is one of those companies. liz: oliver, what do you say to people on a day like this who may be really wanting to buy disney, of course, purchased lucas firm in a $4 billion, couldn't buy disney, apple had a change at the top, one of the top guys -- >> we're very -- liz: who knows, couldn't deal
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with app 8 over two days. what do you say? >> a lot of news bottled up. the market action today is fairly normal, as if nothing happened. that's very, very encouraging from an investors' per speghtsive. be long term ore yennedded. -- oriented. liz: you made it in from fairfield, connecticut, thanks for having me. how are you getting netflix? >> i have the verizon jet pack. the battery power is good. between that and apple ipad. liz: verizon stock is down. >> not because of me. liz: thank you very much. >> thanks, liz. liz: seven minutes before the closing bell rings. one healthy company getting spoofed up, and shares busting at the seams today. as we go to a break, most actively traded names. do you own some of these? ♪
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he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing
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and being ready, no matter what happens, which isn'rocket science. it's just common sense, from td ameritrade. liz: how many of you bought airborne to take because you have a coal? the company that makes it is called shift nutritional international. look at these shares. stopping move to the upside of 45%. it looks like bear health care is going to be buying it. there you go. shift network up nearly 46% at the moment. this was a $22 stock earlier todaying and now, a 33.83 stock. a big move on that one. there's a lot of commerce happening despite all the storm
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and the angst going on, but it appears with just a few seconding left before the end of trade today that the markets are moving, functioning relatively well. david asman because we have the nasdaq coming up. david: all state reporting earnings as well, and the last minute announcement on netflix, n., boosted the share price 16%. liz: carl taking a 10% stake in netflix. nicole on the floor, back in action after a two day closure. obviously, nicole, it's the home retailers who shown today. >> unbelievable day, monumental day; right? pack -- back in action after two days of being closed, home depot, lowe's, best performer. home depot best performer on the dow jones industrial average. david: yesterday, we heard about ford because they had good,ings
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-- good earnings yesterday. nobody expected a 10% gain for gm because of the resolution of the $29 billion in pension costs they have. >> right, we're talking about gm and ford, both clear winners, obviously, and ford now, up 8.3%. both beat the streak. tomorrow, auto sales. liz: i know i mentioned netflix, but we have to show the move because this stock, during the year, was $133, and plummeted to an annual low of 52. look now, $79 all because the name carl icon attached to it. gl that's right. you know, liz, he's a game changer for the companies, getting a full stake in there and makes a lot of changes. a lot of clapping, the employees who helped to keep this place alive are ringing the closing bell.


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